In a current tweet, Luke Mikic, a famend podcaster and YouTuber, highlighted the distinct variations between the upcoming 2025 Bitcoin bull market and its predecessors in 2017 and 2021. Drawing from his insights and the information obtainable, right here’s a deep dive into the three causes that set the 2025 bull market aside:
1. The Hash Rate Race: Nation States Enter the Fray
“The Bitcoin hash rate is going absolutely parabolic, smashing through 400TH/s & another ATH!” Mikic exclaimed. Indeed, the Bitcoin community hash fee just lately achieved a record-breaking 414 EH/s, marking an 80% surge over the past 12 months. This development is especially astonishing given the power challenges in Texas and the escalating world electrical energy prices.
Mikic factors out, “This is the 1st bear market where the hash rate is hitting new ATHs… Is this time different?” The reply appears to be a convincing sure. Nation states at the moment are publicly (and perhaps privately) mining Bitcoin.
El Salvador and Bhutan had been the pioneers, and just lately, Oman joined the league. Oman’s strategic transfer to mine Bitcoin goals to diversify its financial system from oil dependence and bolster renewable power initiatives, together with flare gasoline mitigation. Remarkably, it’s but unknown if no more nations are already mining BTC in stealth mode with out official announcement.
2. Supply Suffocation
Historically, bear markets have seen an inflow of Bitcoin on exchanges. However, the present situation paints a unique image. Mikic notes, “In every prior Bitcoin bear market we’ve seen an increase in the number of coins on exchanges. 2015 – Increase of 800K coins, 2018- Increase of 900K coins, 2022- DECREASE of 1 million since March 2020.”
According to data from Santiment, a mere 5.8% of Bitcoin is now on exchanges, the bottom since December 17, 2017. Furthermore, Bitcoin’s Exchange Depositing Transactions (SMA 7-day) plummeted to a 5-year low, reaching 30,798 BTC per day, a determine paying homage to December 11, 2016. On-chain analyst Axel Adler Jr.’s takeaway? “People do not want to sell BTC. The supply deficit will continue to stimulate growth.”
3. The Great Wall Street Accumulation
The BlackRock Bitcoin spot ETF utility stands as a watershed second in Bitcoin’s journey in direction of mainstream adoption. Mikic emphasizes, (*3*)
As the world’s largest asset supervisor, BlackRock’s entry might bestow unparalleled legitimacy upon the Bitcoin market. BlackRock will most likely promote Bitcoin and its new product in an enormous method, bringing new retail and institutional buyers into BTC.
Looking on the present worth stagnation in Bitcoin, it ought to be famous that there are not any new inflows in the mean time, as evidenced by the lowering quantity of stablecoins within the ecosystem. In the midst of the longest of all bear markets, there’s merely no cause for retailers to get again in in the mean time. However, an occasion just like the approval of a Bitcoin spot ETF can change this abruptly and be the set off for a Bitcoin bull run (even earlier than halving).
In conclusion, the 2025 Bitcoin bull market is poised to be not like some other. With nation states becoming a member of the mining race, a palpable provide shock, and Wall Street giants like BlackRock displaying curiosity, Mikic’s remaining phrases resonate strongly: “Takeaway: NOBODY is bullish enough.”
At press time, BTC traded at $26,058.
Featured picture from iStock, chart from TradingView.com